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MAF661 : CHAPTER 6 & 8

Total questions: 20

Worksheet time: 17mins

Name
Class
Date
1.

Which of the following defines a strategy that focuses on gaining long term-term revenue,profits and maket value through managing operations in multiple businesses?

a)
Business strategy
b)
Corporate-level strategy
c)

Functional strategy

d)

National strategy

2.
Which is not unrelated diversification?
a)
Parenting advantage
b)
Portfolio management
c)
Vertical integration
d)
Restructuring
3.

These are successful divestiture except

a)
Ability to enter new markets
b)
Timing the deal right
c)
Running divestitures systematically through a project office
d)
Removing emotion form the decision
4.

The purchasing of firms in the same industry is called

a)
unrelated diversification
b)
vertical integration
c)
networking the organization
d)
horizontal acquisition
5.

Managerial motives can erode the value creation through

a)
Pooled negotiating Power
b)
Strategic alliances
c)
Internal development
d)
Antitakeover tactics
6.
Firm that have selected a related diversification corporate level strategy seek to exploit
a)
control shared among business unit managers
b)
economies of scope between business units
c)
the favorable demand of buyers
d)
market power
7.

A company pursuing vertical integration can gain market power over its competitors through all of the following EXCEPT :

a)
improved adjustment to technological changes
b)
savings on operations costs
c)
improved product quality
d)
avoidance of market costs
8.
In making a decision to diversify,managers should use value-creating reasons or face the risk that their firms will be acquired and they could lose their jobs. Which of the following is a value-creating reason to diversify?
a)
desire for increased compensation
b)
reduced managerial risk
c)
economies of scope
d)
low performance
9.
Specialty Steel Inc. needs a particular type of brick to line its kilns in order to safely achieve the high temperatures needed for the unusually strong steel it produces. The clay to make this brick is very rare and only two brick plants in the USA make this type of brick. Specialty Steel has decided to buy one of these brick plants. This ia an example of
a)
forward integration
b)
backward integration
c)
horizontal integration
d)
virtual integration
10.

Which type of diversification is most likely to create value through financial economies?

a)
related constrained
b)
operational relatedness
c)
unrelated
d)
related linked
11.

To create new value in entrepreneutrial venture, how many factors need to be present?

a)
2
b)
3
c)
4
d)
5
12.

In opportunity recognition, there are two phases of activity, discovery and evaluation.

In evaluation phase, these are qualities that opportunity need to be viable except:

a)
Achievable
b)
Durable
c)
Rare
d)
Attractive
13.
Which one of these answer is resouces for later-stage financing
a)
Personal savings, family, and friends
b)
Commercial banks, venture capitalists equity financing
c)
Bank financing, angel investors
14.
There are three categories in the entry strategies. Which of the following answer define the pioneering new entry.
a)
a firm's entry into an industry with products or services that capitalize on proven market successes and that usually have strong marketing orientation.
b)
a firm's entry into an industry with a radical new product or highly innovative service that changes the way business is conducted
c)
entry by offering a product or service that is somewhat new and suffiiciently different to create value for customers.
15.

"There is no way to prevent a close competitor from mimicking the new firm strategy to keep the customers"

The statement above is one of the disadvantages of ____ new entry.

a)
Pioneering
b)
Imitative
c)
Adaptive
16.
Below are reasons why companies launch new competitive actions EXCEPT?
a)
Improve market position
b)
Capitalize on growing demand
c)
Scale down production capacity
d)
Provide an innovative new solution
e)
Obtain first-mover advantages
17.
There are TWO types of competitive action. What are they?
a)
Strategic actions
b)
Threat analysis actions
c)
Tactical actions
d)
Competitive actions
18.
Which one is the action in strategic actions?
a)
Price cutting
b)
Product/Serices enhacing
c)
Entering new market
d)
New distribution channels
19.

What are the THREE factors for the competitor to respond?

a)
Market Dependence
b)
Competitors' Resources
c)
Actor's Reputation
d)
Competitor's Reaction
20.
What is the meaning of forbearance?
a)
When a firm choose to not reacting to a rival's new competitive action.
b)
When a firm's strategy of both coorperating and competing with rivals firms.
c)
When a firm respond to a competitive challenge.